Defining your financial
goals can be difficult, just like reaching them. Also, defining your goals
can be a process and they may change over time. Let's start with some
general ideas that could be the definition of a good financial life.

Some of the long term
goals that many people list include:

Owning and living
in a nice home.

Being able to afford
travel and to take nice vacations.

Saving enough to
have a financially secure retirement.

Paying less in
income tax.

Earning more on
their investments.

Being able to afford
college educations for their children.

Having assets that
are passed on to their heirs.

These are
relatively concrete concepts, the costs of which can be determined with
a calculator and some assumptions.

But there is more
to a good financial life than just long term concrete goals that can be
calculated. There are short term and intermediate term goals that should
be taken into account.

Being able to afford
a comfortable home in a safe neighborhood, whether the home is rented
or owned.

Driving a nice
and reliable car.

Being able to afford
gifts for loved ones.

Taking nice, but
not extravagant vacations.

Accumulating some
net worth.

Getting out of
debt.

Starting the process
of saving for retirement and college educations.

There are also intangibles
that should be considered.

A feeling of being
in control of your finances.

Handling finances
without too much stress.

Feeling that you
are making progress toward your long term goals.

Not worrying about
money.

Not spending too
much time and effort handling your finances.

Knowing you are
doing the right things financially and not making mistakes.

Financial peace
of mind.

The benefits of
patience and time
All of these things can be within your reach, but each of them takes effort.
The key is to start early, learn as you go, make fully informed decisions,
avoid major mistakes and balance all your goals.

Learning to manage
your finances intelligently can be different than learning most skills.
Learning to ride a bicycle is relatively simple - you get on, you balance
yourself, you pedal, you turn and you break. There are very few variables.
With your finances, there are many variables and those variables change
over time. You have different jobs and income levels, your expenses change
and there can be unexpected expenses, certainly the investment markets
fluctuate, the tax rules change and your goals change. Some of these changes
you can control and others are beyond your control.

In addition, our minds
are not naturally accustomed to thinking about finances the way we need
to. We all tend to want immediate gratification and to believe we are
in control of all aspects of our lives. Achieving financial goals, whether
they are long term, short term, or intangible requires that we make decisions
that balance short term and long term priorities.

The good news for
young adults is that all of the tools needed to achieve your goals are
available. The information you need to improve your financial literacy
is readily available; you have access to all the products and services
you need and time is on your side.